The NEO price has created a bearish reversal pattern near $23. While a short-term decline seems likely, the long-term trend remains bullish.
Double Top
On August 30, the NEO price reached a high of $23.31. Throughout the following week, a considerable drop took place which encompassed the entire cryptocurrency market. Despite this, the NEO price regained the entirety of its losses in a short period, reaching a high of $23.09 on September 25. However, the price fell again shortly afterward, possibly creating a double top pattern. The pattern was combined with considerable bearish divergence on both the RSI and the MACD, while the Stochastic Oscillator made a bearish cross. These are signs that the price is likely to move downwards. If it does, the closest support area is found at $16.50, while the next one is at $11.70.
Long-Term Support Levels
Cryptocurrency trader @Lomahcrypto stated that he is now a NEO maximalist since he believes that the price will move upwards in the long-term. The weekly chart does indeed look bullish. The move mentioned in the previous section caused a breakout from the long-term resistance area at $16.50. Because the price has already reached a close inside the previous wick resistance, the next resistance areas would be found all the way at $38 and $49, respectively. These are the 0.382 and 0.5 fib levels of the entire previous decline. Technical indicators are bullish. The Stochastic Oscillator has made a bullish cross and has been rising alongside the MACD and RSI, even though the latter is overbought. Therefore, the long-term trend for NEO remains bullish, despite the possibility of a short-term fall.
NEO/BTC
The NEO/BTC weekly chart looks similarly bullish. The price has broken out and validated the ₿0.00156 area as support, creating a bullish engulfing candlestick the following week. If the price continues moving upwards, the next resistance area would be found at ₿0.00256. Technical indicators are bullish. All three of the RSI, MACD & Stochastic Oscillators are increasing, and the latter has already made a bullish cross. This is a sign that the price should continue moving upwards.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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